The oil filter does indeed need to be relocated, regardless of drive-shaft clearance.
The original pump is a funny one! The pump sucks oil from the pan and sends the oil to the filter through the main girdle via a passage in the pump. Once the oil is filtered... it is returned to the block via another passage in the pump. Eliminating the pump will obviously eliminate the passages that send oil too and from the filter.
The original pump and the type s pump both use the same port on the girdle to send oil into the block.